AT: Inflation at 3.3% in April

Statistics Austria published a flash estimate of Austrian inflation for April today. Inflation, measured by the Harmonised Index of Consumer Prices (HICP), was 3.3% year-on-year, up from 3.1% in March. This means that inflation in Austria remains well above the ECB's target of 2% for the eurozone average. Inflation measured by the Consumer Price Index (CPI) also rose compared to March, standing at 3.1% year-on-year.

According to preliminary estimates by Statistics Austria, energy prices continue to drive inflation, but rose only very moderately at +0.7% compared with the previous year. Price increases for services remain the main driver of inflation at +4.8% y/y. This is likely to be due primarily to the rise in prices for package holidays due to the Easter holidays. Price dynamics in the services sector should ease noticeably in the course of the year due to moderate wage increases. For 2025 as a whole, we expect HICP inflation of around 2.4% and a further slight decline in 2026.